I see this as a need to get into more family homes.  Nintendo has usually done well there, but I do not think, while the Switch is appealing to gamers and making us happy, that Switch is appealing to the family demographic.  There are still going to be games for gamers like Smash Brothers, Pokemon, Metroid Prime 4, 3rd party titles.  But just like Xbox and Playstation have shown, getting the "family" demographic can be hard if seen as just a hardcore gaming machine.  

Also Nintendo would like to make gaming more of a part of people's lives, rather than just a niche thing that a portion of people play.  I'm interested to see where they take it.  LABO is a good start with ideas. Some traditional gaming experiences will be great for this strategy too if tweaked a little in user interface, such as Animal Crossing, Mario Party, or Pikmin. 

I would love to see a series of high quality, well-developed casual games that have the same creativity as Splatoon and LABO.  Maybe 5 games into the next year exploring different ways to play with Switch.  Balanced with about 7 or so gamer-centered Nintendo offerings each year, 2 of which explore new Switch playstyles, 2 completely new IPs such as Splatoon and ARMS, and continued partnerships and encouragement of every 3rd party developer and indie studio they can find.

Switch still has the potential to surpass the Wii in sales, SNES in game quality, and PS2 as console king if everything hits well.

*Says the person disparaging people for using a forum like a forum* 

Ninty always offered a range of games wide enough to cater for both core and casual gamers, they'll do it again, the only difference could be putting more resources into some big casual games, like they did for Wii, and this time, having unified home and portable in the hybrid, they have more resources to offer a wider range of games, so they should be able to satisfy both kind of gamers more easily.

LMAO 

Probably not, I dont think they should try to be honest. 

Strategy doesn't work when things like 1,2 Switch and Labo are not really moving big numbers of hardware.

Selling on par with Nintendo Land or Wii Party U on Wii U doesn't get the job done, so long as games like 1,2 Switch and Labo are selling only a tiny fraction of what their 2005-2009 (pre-smart app years) hits did the strategy doesn't work.

Nintendo's "expanded audience" software has typically done modest numbers as launch. But they proved to be consistent sellers, getting their crazy numbers from the legs that they have. Brain Age for example, debuted at around 44k in Japan, yet that game is considered a big hit. 

Brain Training also sold 19+ million copies. Something neither 1,2 Switch or Labo will ever come close to combined. 

Labo is going to be outsold by a Kirby game. 

Nintendo hasn't had a big break through success in an "expanded audience" with a new concept for a decade now. Wii Fit released 10 years ago basically ... since then they've been wandering the wilderness trying to find the next break out hit with little success. 

All the mega-successful "expanded audience" type games post 2010 have come from the smartphone market ... Angry Birds, Candy Crush, Words With Friends, Clash of Clans, Pokemon Go, etc. etc. etc., Nintendo's not been able to produce anything close to as successful as those types of pop culture phenoms on their dedicated hardware platforms for ages now. 

So I mean they can try all they want, but it's pretty clear audiences are not responding to things like Wii Music or Nintendo Land or Nintendogs + Cats, or 1,2 Switch, or probably Labo in the way prior to the smartphone boom.

You're making assumptions based on absolutely nothing. Who's to say Labo won't pull crazy high numbers in the future? It just came out. And 1-2 Switch is probably going to be one of the Switch's longest selling titles at the end of the day. 

It can take time for a new idea to catch on like wild fire, so Labo is off to a decent start so far. Not every thing needs to be an instant mega hit right out of the gate. Again, Brain Age debuted to modest numbers, but it had crazy long legs that it sold well, even years into the DS' life. Not only did Labo have a more successful debut in Japan, but the Variety Kit has also never left the top 5 according to Media Create since launch. So it has some legs at least. 

Your also completely ignoring the fact that both games, along with the Switch in general offer a unique experience compared to smartphones. And maybe the reason that Nintendo hasn't had another break out hit in the expanded audience arena is because their casual games during the Wii U and 3DS era were all token rehashes of proven successes. 1-2 Switch and Labo are completely new ideas. 

I loved the early Wii era Nintendo! Wii sports was a phenomenal piece of software, but stuff like Labo is just trash. The software that comes with Labo is beyond bad the hardware is just cardboard. Nintendo needs to realize that consumers are not dumb.